Tanzania Signs USD 105.6 Million Contracts to Connect Kagera Region to National Grid in 24 Months

The Government of Tanzania has signed contracts worth USD 105.6 million to connect Kagera Region to the national electricity grid for the first time.

The project involves the construction of a 220 kV transmission line from Benako in Ngara District to Kyaka in Misenyi District, and a 220/33 kV substation at Benako. It will be completed within 24 months at a total cost of TZS 262.5 billion.

The contracts were awarded to China’s TBEA Co. Ltd for the substation construction and India’s Transrail Lighting Limited for the transmission line.

All districts of Kagera, including Bukoba, Muleba, Misenyi, Karagwe, and Kyerwa, will be supplied with reliable power from the national grid.

Until now, the region has relied mainly on electricity imports from Uganda, totaling around 40 MW, and an additional 7 MW from a private operator.

Speaking at the signing ceremony in Dodoma on 25 August 2025, Deputy Prime Minister and Minister of Energy Doto Biteko said the project fulfills President Samia Suluhu Hassan’s commitment to deliver stable power to the region.

“For the first time, Kagera will be connected to the national grid, guaranteeing reliable electricity supply and enabling economic and social development across the region,” Biteko said. He confirmed the project is to be implemented within 24 months.

The project is co-financed by development partners, with the OPEC Fund contributing USD 60 million, the Abu Dhabi Fund USD 30 million, and the Saudi Fund USD 13 million.

The Government of Tanzania will contribute USD 2.6 million to cover compensation for more than 1,000 residents affected by the project.

Kagera Regional Commissioner Fatuma Mwassa welcomed the development, noting that previously only three districts in the region were connected to the grid.

She said the connection will unlock economic opportunities and pledged that residents will pay their electricity bills to support TANESCO’s operations.

Permanent Secretary of the Ministry of Energy Felchesmi Mramba said that with this project, all four Tanzanian regions that were not yet connected to the national grid are now covered by grid-extension projects.

TANESCO Managing Director Lazaro Twange added that the project will enable integration of new generation projects, including the 87 MW Kakono hydropower plant.

Kagera Region

Kagera Region is located in northwestern Tanzania, on the western shore of Lake Victoria, and shares borders with Uganda, Rwanda, and Burundi.

The region has a population of more than 3 million people and covers several districts, including Bukoba, Muleba, Misenyi, Karagwe, and Kyerwa.

The economy of Kagera is primarily agricultural, with major production of coffee, tea, bananas, and fisheries products, supporting both local consumption and cross-border trade.

Despite its economic potential, until recently, the majority of districts in the region relied on electricity imports from Uganda, totaling around 40 MW, while a small portion received an additional 7 MW from a private operator at Mirongo/Kikagati.

Prior to the current project, only three districts in Kagera were connected to the national electricity grid, leaving the rest of the region without access to reliable national power.